25. Contingent Liabilities and Other Financial Commitments

Contingent liabilities

The following table presents warranty contracts as well as other contingent liabilities existing as of the reporting date:

Contingent Liabilities

 

 

 

 

 

 

 

Dec. 31, 2017

 

Dec. 31, 2018

 

 

€ million

 

€ million

Warranties

 

1

 

1

Other contingent liabilities

 

6

 

3

Total

 

7

 

4

Other financial commitments

The other financial commitments were as follows:

Other Financial Commitments

 

 

 

 

 

 

 

Dec. 31, 2017

 

Dec. 31, 2018

 

 

€ million

 

€ million

Operating leases

 

424

 

450

Orders already placed for started or planned investment projects

 

187

 

248

Loan commitments to Bayer-Pensionskasse VVaG

 

208

 

208

Total

 

819

 

906

The nondiscounted future minimum lease payments relating to operating leases were as follows:

Operating Leases

 

 

 

 

 

 

 

 

 

 

 

Dec. 31, 2017

 

 

 

 

 

Dec. 31, 2018

Maturing in

 

€ million

 

 

 

Maturing in

 

€ million

2018

 

76

 

 

 

2019

 

89

2019

 

57

 

 

 

2020

 

69

2020

 

53

 

 

 

2021

 

59

2021

 

47

 

 

 

2022

 

54

2022

 

44

 

 

 

2023

 

48

2023 or later

 

147

 

 

 

2024 or later

 

131

Total

 

424

 

 

 

Total

 

450

Obligations from leases classified as operating leases relate mainly to leases for real estate and logistics infrastructure. The increase in future minimum operating lease payments is primarily attributable to new leases for depots in Germany, tank wagons in the United States, and other new leases.

In cases where pension obligations allocable to the Covestro Group are funded through pension institutions used jointly with other companies (especially Bayer), it is generally contractually ensured that Covestro participates in funding measures that serve to guarantee adequate funding status and/or adequate solvency capital of these pension institutions for the long term. To this end, Covestro AG agreed to grant Bayer-Pensionskasse VVaG an interest-bearing loan of up to €208 million for the effective initial fund as required.